Mainland
- Foreign ownership: 100% for most activities
- Trade inside the UAE: Anywhere in the UAE, directly
- Corporate Tax: 9% over AED 375k
- Best for: Local-market selling & services
Free zone vs mainland vs offshore in Dubai
The key differences in ownership, trading, visas and tax — so you choose the right structure for your business.
Free Zone
- Foreign ownership: 100%
- Trade inside the UAE: Within zone + internationally (locally via a distributor)
- Corporate Tax: 0% on qualifying income (QFZP), 9% otherwise
- Best for: International trade, services, tech
Offshore
- Foreign ownership: 100%
- Trade inside the UAE: Cannot trade inside the UAE
- Corporate Tax: Usually 0% if no UAE income / PE
- Best for: Holding, asset protection, global trade
| Mainland | Free Zone | Offshore | |
|---|---|---|---|
| Foreign ownership | 100% for most activities | 100% | 100% |
| Trade inside the UAE | Anywhere in the UAE, directly | Within zone + internationally (locally via a distributor) | Cannot trade inside the UAE |
| Government contracts | Yes | Limited | No |
| Office | Usually an office / Ejari | Flexi-desk or virtual available | No office required |
| Visa quota | Based on office space | Based on package | No residence visas |
| Corporate Tax | 9% over AED 375k | 0% on qualifying income (QFZP), 9% otherwise | Usually 0% if no UAE income / PE |
| Best for | Local-market selling & services | International trade, services, tech | Holding, asset protection, global trade |
Frequently asked questions
Which is cheaper — mainland or free zone?
Free-zone packages are often cheaper to start and need no physical office, but mainland can be the better fit if you sell directly to the local market. Cost depends on activity, visas and office — estimate yours.
Can a free-zone company sell in the local market?
Free-zone companies trade internationally and within their zone; to sell into the local UAE market they typically use a local distributor or a dual licence.
Is offshore an option for residency?
No — offshore companies don’t grant residence visas and can’t trade inside the UAE; they’re used for holding, international trade and asset protection.
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